Rapid Operational Excellence by Technology Assited Governance

Dr Mark HodgkinsonOperational Excellence The Bahrain Petroleum Company (BAPCO)Kingdom of Bahrain

Agenda

Bapco’s Operational Excellence Journey (thus far)

The Operational Excellence Management System (OEMS)

Operational Governance Concluding Remarks

Management System Process

Assessment

Vision & Objective

s

PlanningLeadership

AccountabilityReview

Implementation

• Set an OE Vision• Conduct gap

Assessments• Prioritize gaps • Develop 3-year Plan• Integrate into

Business Plans• Assign tasks and

process roles in PMP• Implement OE plans• Build or improve OE

Processes and Standards

• Regularly Review and measure progress.

• Build an OE culture

OE Management System Process & the Annual Continuous Improvement Cycle

Our OE Journey (thus far)

Begun in 2011 Goals for OE

Create a culture of OE and embed its values Close compliance and effectiveness gaps Continuously improve

Many initiatives & projects Improve Management of Change (MOC) Improve Incident Investigation Improve Safe Work Practices (SWP) Implement API RP-754 Process Safety Tiers Implement Siemens XHQ system

Operational Governance Introduced (Dec 2012)

OEMS Components

5 Objectives

13 Elements

46 Expectations Mapped to 27 Bapco OEMS Processes

Each Process has an Owner & a

Custodian

OEMS is the framework we utilize to implement and maintain OE

OEMS Component Examples

Objectives Personal Safety Reliability

Elements Safe Work Practices Environmental Stewardship

Expectations Must use Operational Readiness for MOC Contractor Safety Management: every Contractor

has a Bapco Owner with set accountabilities.

In breaking the components down to the Expectation level, the organization makes the Objectives manageable, measurable and achievable

Bapco OEMS Processes

Security Permit to WorkStop Work Authority

Process Eng. Monitoring and Optimization

Emergency Process Safety Information Document Management System

EMS( Environment) PSSR Governance & Audit

Occupational Health & Hygiene

MOC Legal Advocacy

Road Safety Planning, Scheduling and Execution Training

Safe Work Practices(e.g. Confined Space)

Asset integrity Customer Satisfaction

CSM (Contractor Safety ) Area Reliability Teams Design for Safety and Reliability

Process Hazard Analysis (PHA)

Lock-Out-Tag-Out Incident Investigation

Operator Routine Duties BOOST (Safety Observations) Community Awareness

How does Bapco facilitate and sustain Operational Excellence?

Operational Governance through Operational Intelligence

Governance is about ensuring that people do what they are supposed to do.

Governance should not be a meeting; It should be the way we operate every day.

People need the information at their fingertips to make decisions and to follow up activities.

If you provide a ‘one-stop shop’ for this information, you will overcome operational issues.

‘More eyes’ and more transparency into business process are the key to successful Governance.

Operational Governance

Refining Area

Section Unit

The Section Level is where operational decisions are most effective if the Superintendents have the information they need to make effective decisions.

The Section Level is where the OE Team focused for initiating OE Governance

Bapco Operations Hierarchy

Bapco’s Solution for Operational Governance

Each operating section of Refining meets once per month to review a static agenda.

Operations leads the meeting, facilitated by OE. Representatives from Maintenance, Tech Services,

Reliability, and Engineering are always present Zero preparation required of Operations. Status for each agenda item is provided by OE

with “live” information coming from XHQ. There are no minutes from the meeting, only a

report of outcomes. Problem-solving is not allowed. The purpose is to

ensure that problems are being solved.

What do we review in Governance?

Safety, Health & Environmental issues (both leading and lagging indicators)

What is Overdue and what are the obstacles? Audits, Actions, Incident Investigations,

Operational Checks, MoC’s, Critical Work Orders, Inspections etc.

Process Safety Effectiveness Threats to Reliability and Bad Actors Special Focus Areas

Remember this key point a few slides back?

Most continuous process facilities have loads of information systems and data sources.

Rarely is it simple or efficient to access this information.

Bapco utilizes XHQ for Operational Intelligence.So….what is ‘XHQ’?

People need the information at their fingertips to make decisions and to follow up activities.

XHQ

“eXtended HeadQuarters”, an Operational Intelligence software system from Siemens

More than 10 years of experience in Downstream

In use in more than 90 refineries globally

Initial implementation can be rapid

Walk-through of Bapco’s XHQ Solution

Bapco’s XHQ in a Nutshell…Real-time Process Data

Historical Process Data

Lab Results

Work Requests & Work Orders

Assets

Tank & Inventory

Incident Investigations

Behavior Based Safety

Employee & Organization

MOC’s

Action Tracking

Audits

Process Alarms

Training

KPI’s

Bapco Information Systems

XHQWorkfor

ce

One source for all data Supports & Sustains

Decision SupportOperations Monitoring

ComplianceGovernanceReliability

Safety Culture

AggregateRelate

ContextualizeInformAlert

Governance at the Sectional Level In addition to this information

Data is enhanced with online Governance metrics

Key Operating

Parameters

Leadershi

p Focus Areas

KPI Status

Filtered Mini-Explorers

‘Actions’ Mini-ExplorerFiltered for the Section

‘Actions’ Governance MetricsCompiled for the Section

‘Incident Investigations’ Mini-ExplorerFiltered for the Section

‘Incident Investigations’ Governance Metrics

Compiled for the Section

‘MoCs’ Mini-ExplorerFiltered for the Section

‘MoCs’ Governance MetricsCompiled for the Section

Multi-Dimensional Explorers

Take one data source (e.g. Incident Investigations) and create a series of views of that provide more meaningful uses of the information.Incident

Investigations

Investigation Steps & Workflow

Process Safety &

Fires

Environment

Equipment Failures

Illness & Injury

Value-add

Additional value-add in the form of streamlining the communication / collaboration process

Value-add 2

Automated “push” email and online reports

Is Operational Excellence and Governance Making a Difference for Bapco?

Example: MOC Compliance2011 -

2H

2012 -

1H

2012 -

2H

2013 -

1H

2013 -

2H

2014 -

1H

2014 -

2H

0

50

100

150

200

250

300

350

Overdue Items

MOC'sXHQ Governa

nce

Example: Overdue Safety Work Orders

2011 - 2

H

2012 - 1

H

2012 - 2

H

2013 - 1

H

2013 - 2

H

0

50

100

150

200

250

Overdue Safety WO's

XHQ Governance

Shared Learning

Governance--like OE--is a journey. Keep your initial expectations in check.

Focus on a few key issues and use Governance to overcome them. What is measured gets managed…

Highlight successes! Clearly establish an initial goal with

everyone that you want to move from a culture of “completing overdues” to one of “completing before overdue”.

Allow the Governance process to mature over time.

When you fix a problem (e.g. Overdue MoC’s), find other problems to fix

Concluding Remarks

The adoption of Operational Excellence can be accelerated by using visualizations of compliance and systematic governance.

The technology already exist and can be easily leveraged Operational Governance needs to be efficient if it seeks

to be effective in the long term. Industrial Operational Intelligence is key in the

governance of a continuous process like Refining or oil & gas production.

The approach has been proven to work on multiple sites with limited resources.